Interactive Investor

Can Barclays shares extend seven-year high?

Just days after trading at their highest since 2017, the high street lender's share price has slipped back. Independent analyst Alistair Strang thinks a new trend has developed.

10th June 2024 07:43

by Alistair Strang from Trends and Targets

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Barclays bank branch 600

When we reviewed Barclays (LSE:BARC)three weeks ago, the share price was 216p and we'd given 223p as an initial target. This was achieved on 3 June but the share price closed the session at just 219p and has spent the time since trying to convince the market the 220p level is actually inviolate.

We do not think this is the case due to our Green 217.1p line since 2022. If we review how the share price has performed in relation to this historical high since the start of May it certainly is giving an impression of being important, the market closing above a few times, below a few times.

Our inclination is to treat this as the formation of something called a "Horizontal Trend", a price level which shall prove terribly important once the share breaks away from it - ideally in an upward direction.

Visually, there's the need for the share price to now trade above the prior high of 224.25p, but our own inclination is to set off a party popper if Barclays manages to close a session above the highest previous closing price of 220p. This calculates with the potential of a lift to an initial 239p with our secondary, if beaten, now working out at a future 291p

Should Barclays intend to behave quite spitefully, their share price needs slump below 158p, something which appears very unlikely. But for now, there is the scenario of travel below 210p provoking a visit to an initial 197p with our secondary, if broken, at a bottom of 176p.

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Source: Trends and Targets. Past performance is not a guide to future performance.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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